PARIS (Agefi-Dow Jones)–The tire manufacturer Michelin expects another year of growth in its operating profit in 2022, after recording a sharp rebound in its markets and its results in 2021.
In a context that is still “very disrupted” by supply problems and the rise in raw material prices, the tire markets for passenger cars and light trucks should experience growth of between 0% and +4% over the year, truck tires grew between 1% and 5% and “specialty activities” an increase of between 6% and 10%, Michelin said in a press release.
In this scenario, Michelin forecasts for this year an operating result of the sectors higher than 3.2 billion euros at constant exchange rates and a structural free cash flow higher than 1.2 billion euros.
During the financial year ended at the end of December, the operating profit of the sectors, the group’s main indicator of income, amounted to 2.97 billion euros, against 1.88 billion euros a year earlier. It thus returned to its 2019 level. The operating margin stood at 12.5%, also returning to the pre-Covid level, after falling to 9.2% in 2020.
Michelin also generated a net profit of 1.85 billion euros in 2021, compared to 625 million euros in 2020.
Turnover amounted to 23.79 billion euros, up 16.3% over one year.
According to a consensus established by FactSet, analysts on average expected an operating result of the sectors of 2.96 billion euros, a net result of 1.89 billion euros and a turnover of 23.25 billion euros. euros.
Michelin’s supervisory board will propose to the next general meeting the payment of a dividend of 4.5 euros per share for the past financial year, compared to 2.3 euros per share for the 2020 financial year.
-Francois Schott, Agefi-Dow Jones; +33 (0)1 41 27 47 92; [email protected] ed: LBO
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February 14, 2022 12:09 ET (17:09 GMT)